Zambian minister under investigation over Trafigura contract

Trafigura, the multinational commodities trading company, is embroiled in an investigation into a Zambian government minister who is accused of taking bribes over a $500m fuel contract.

Zambia’s justice minister, Wynter Kabimba, was on Monday called in front of the country’s Anti-Corruption Commission to respond to allegations that Trafigura paid his company, Midland Energy Zambia, to secure a petrol and diesel supply deal.

The hearing was suspended amid chaotic scenes and protests from the minister’s supporters. A spokesman for the ACC said: “[Kabimba] came with sympathisers. The atmosphere was not conducive. We will need to reschedule.”

Kabimba, who is also secretary-general of the ruling PF party, has consistently denied the allegations and says he will resign as minister if the ACC finds evidence proving he influenced the deal or received any kickbacks from Trafigura.

He has urged the ACC to pursue its investigations vigorously and tell Zambians the truth about “any wrongdoing”. He did not respond to efforts by the Guardian to contact him.

Trafigura said: “In August 2012 Trafigura was awarded a tender by the republic of Zambia’s ministry of mines, energy and water development for the supply and delivery of 216,920,000 litres of diesel and 21,230,000 litres of leaded petrol over a two year period. The tender process was run on behalf of the ministry of energy by ZPPA, an independent regulatory body which follows World Bank procurement guidelines and procedures to evaluate bids on both a technical and a financial basis. Trafigura categorically refutes any allegation of corruption at any stage before, during or after the award of this tender and welcomes the investigation by the Zambian Anti-Corruption Commission.”

The company added that it had never made any payments to Midland Energy.

Kabimba is a director of Midland Energy and the Guardian has seen copies of the company’s incorporation documents which list the minister as a board member and shareholder. The company was registered on 10 January 2012, four months after the current government came into power.

Local reports have suggested that the allegations against Kabimba have been made by sources close to Zambia’s defence minister, Geoffrey Mwamba. Among the claims are that he recently travelled to Lebanon to collect the payment on behalf of Midlands Energy.

Mwamba is himself fending off accusations of corruption and the ACC is examining claims he influenced the award of a contract to a firm owned by him and his relatives. He denies the allegations and that his supporters had anything to do with claims concerning Kabimba’s business affairs. He said: “I’ve no idea [where the Kabimba allegations came from]. The stories emerged when I was being accused of soliciting business for one of my companies, which was not the case.”

Commodity trading firms such as Trafigura and Glencore have attracted increasing attention from campaign groups which have attempted to unpick their sometimes opaque dealings.

In 2009 the Guardian fought a landmark legal battle to reveal how Trafigura was linked to the dumping of tonnes of toxic waste in the Ivory Coast three years earlier, causing a public health crisis that affected more than 100,000 people. Effects included breathing difficulties, nausea, stinging eyes and burning skin.